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  • 1.Shampoo Industry 20.11.02 Category : FMCG Product : Shampoo

2. This Presentation Covers

  • What is FMCG ?
  • Characteristics of FMCG products
  • Hair Care Category in India
  • Types of Shampoos
  • Hair Care Facts
  • Market Size
  • Awareness
  • Shampoo usage details
  • Penetration details
  • Growth in this industry
  • Evolution of shampoo as a product
  • The top brands
  • Ad Spends, and brands on the net

3. What is FMCG ?

  • FMCG refers to consumer non-durable goods required for daily or frequent use.Typically, a consumer buys these goods at least once a month.

4. FMCG Products

  • Detergents
  • Toilet soaps
  • Toothpaste
  • Shampoos
  • Creams
  • Powders
  • Food products
  • Confectioneries
  • Beverages
  • Cigarettes

5. Typical Characteristics of FMCG products

  • Individual products are of small value.But, all FMCG products put together account for a significant part of the consumers budget
  • The consumer keeps limited inventory of these products and prefers to purchase them frequently, as and when required
  • Many of these products are perishable
  • The consumer spends little time on the purchase decision.Rarely does he / she look for technical specifications ( in contrast to industrial goods )
  • Brand loyalties or recommendations of reliable retailer / dealer drive purchase decision
  • Trial of a new product i.e brand switching is often induced by heavy advertisement, recommendations of the retailer or neighbors / friends.

6. Typical Characteristics of FMCG productscontd.

  • These products cater to necessities, comforts as well as luxuries
  • They meet the demands of the entire cross section of population
  • Price and income elasticity of demand varies across products and consumers

7. Hair Care Category in India

  • There are 5 main products
      • Hair Oil
      • Shampoo / Conditioners
      • Styling products
      • Herbal Remedies
      • Hair Dyes / colors

8. Shampoos

  • Did you know, that the word Shampoo is derived from the Hindi word Champi.
  • Remember Johnny Walkers famous song - Meri Jaan, Meri Jaan, Sunday Ke Sunday, Teil Maalish - Champi Teil Maalish.
  • The British loved the massageso much, they started calling Champi as Shampoo

9. TG for Shampoos

  • Hair Shampoos and Conditioners are targeted at
      • Upper middle class
      • Now, also middle class and house wives
      • Upper class rural consumers
      • Teenagers - they are the major segment

10. Types of Shampoos

  • Shampoo market is segmented on benefit platforms
      • Cosmetic ( shine, health, strength )
      • Anti - Dandruff
      • Herbal

11. Hair Care Facts

  • The frequency of shampoo usage is very low.Most consumers use shampoo only once or twice in a week.In many cases, these products are used on special occasions such as weddings, parties etc
  • Some customers use shampoo only to address a specific problem such as dandruff or when they need to condition their hair
  • Use of conditioners is not common.It is restricted to the super premium segment or those who are very involved with their hair care
  • Some consumers use natural conditioning agents such as henna
  • About 50% of consumers use ordinary toilet soaps to wash their hair
  • About 15 % of consumers use toilet soaps as well as shampoo for cleaning their hair

12. Hair Care Factscontd.

  • Brand loyalties in shampoo are not very strong.Consumers frequently look for a change, particularly in fragrance
  • Consumers attribute lathering to the act of cleaning
  • Major expectations from the product are improvement in texture and manageability, giving softness and bounce to hair, curing and avoiding damage to the hair
  • An Indian needs more shampoo for a proper wash ( average 6 ml ) compared to 4 ml needed in Western countries as most Indian women have long hair
  • Most consumers do not use shampoo daily
  • Regular users would need smaller quantity of shampoo per bath.Hair tend to collect more dust due to dusty environment and oiling habits
  • Southern market is predominantly a sachet market, accounting for 70 % of sachet volumes

13. Hair Care Factscontd.

  • In Contrast, shampoo bottles are more popular in the Northern markets
  • About 50 % of the shampoo bottles are sold in the Northern region alone
  • In the North, local brands such as Ayur have strong equities and these products being low priced dilute sachets USP of low price

14. Shampoo market Size in India

  • Size of shampoo market - 930 Cr
  • Anti - Dandruff Shampoo - 20 % of above
  • Sachet Sales - 70 % of above

15. Shampoo Awareness in India

  • Urban areas - 90 %, accounting for 80 % of shampoo sold in the country
  • Rural areas - 80 %, accounting for 20 % of shampoo sold in the country

16. Shampoo Usage

  • Per Capita consumption of Shampoo in India - 13 ml
  • Per Capita consumption of Shampoo in Indonesia - 160 ml
  • Per Capita consumption of Shampoo in Thailand - 330 ml

17. Shampoo Penetration in India

  • All India Shampoo - 14 %
  • Urban - 40 %
  • Rural - 10 %

18. Growth in Shampoo Market

  • Average Growth over the last few yrs - > 20
  • Expected Average growth over the next few yrs - 25 %
  • AD segment is the fastest growing segment, growing at 10 - 12 % every year.
  • H & S growing at 15 - 20 % every year.

19. Evolution of Shampoo in India

  • HLL undisputed leader from the early 90s
  • Sunsilk launched in 1964 ( General Shampoo platform )
  • Clinic Plus launched in 1971 ( Family, health shampoo platform )
  • Clinic All Clear launched in 1987 ( Therapeutic AD Shampoo )
  • Sunsilk re-launched in 1987 - Shampoo + Conditioner ( Beauty platform ) with Sachet SKU
  • HLL Goes rural with Sachet
  • Clinic Active launched in 1991 ( with Pro Vitamin B - health platform )
  • Sunsilk re-positioned and re-launched in 1994 ( Nutracare) - Pink for dry hair, yellow for normal hair, green for oily hair and black for long hair

20. Entry of Competition

  • Why did competition Enter India
      • Teeming millions
      • Burgeoning middle class
      • Westernized youth
      • low penetration levels
      • Huge untapped market

21. New Entrants into the Market

  • P & G enters India in Nov 1995,with the worlds largest selling brand - Pantene
  • Colgate Palmolive launched Optima also in Nov 1995 ( break through in Keratin treatment )
  • Nirma launched Nirma Shampoo which went into rough weather because it also had a detergent and soap with the same name.The brand name also had low price connotations

22. Shampoo Boom in India

  • In mid 1997, per capita consumption of Shampoo increased
  • Of the Rs. 350 Cr. Shampoo market, the AD segment accounted for a 20 % share
  • P & G launched its Internationally acclaimed A & D shampoo H & S in 1997 with Zinc Pyrithine ( ZPT ) - a unique anti-microbial agent.There were 2 variants - regular and menthol
  • Sachet sale became 40 % of all shampoo consumption in the country

23. HLL Dominance

  • Clinic, Sunsilk, Organics and Lux and their various brand extensions dominate the shampoo market
  • In 1998, the company re-launched Clinic and Sunsilk brands
  • Sunsilk was re-launched with Fruitamins.
  • Today HLL has a 63 % market share in the shampoo market
  • In South India, Clinic Plus and Clinic All Clear put together have a market share of about 70 %

24. 25. The top Shampoo brands

  • Normal Shampoos
      • Clinic Plus
      • Sunsilk